China financial system ‘largely stable’

Beijing, Jan 9 (IANS) China’s financial system is “largely stable” and foreign exchange reserves are “relatively abundant”, the State Administration of Foreign Exchange (SAFE) said on Saturday.

The official remarks came after the Chinese yuan, under persistent depreciation pressure, dipped to a five-year low against the US dollar earlier this week, Xinhua news agency reported.

The SAFE said in an online statement that it will further facilitate cross-border trade and investment, and continue to promote the yuan’s convertibility under the capital account in an orderly manner.

The administration will strengthen the monitoring of China’s balance of payments and improve the management of foreign debt and cross-border capital flows.

The SAFE will also try to better operate and manage the country’s foreign exchange reserves.